NEW JERSEY REAL ESTATE SALESPERSON
Practice Exam 2 Questions and Answers with
Rationales Latest Versions
Question 1
The New Jersey Real Estate Commission's primary responsibility is to:
A. Set mortgage interest rates
B. Regulate and license real estate professionals
C. Determine property tax assessments
D. Approve all real estate sales contracts
Correct Answer: B. Regulate and license real estate professionals
Rationale
The New Jersey Real Estate Commission (NJREC) is responsible for
regulating the real estate industry, including:
• Licensing brokers and salespersons
• Establishing education requirements
• Investigating complaints
• Enforcing real estate regulations
Why the others are incorrect:
• A: Interest rates are determined by financial markets and lenders.
• C: Property taxes are handled by local government authorities.
• D: Contracts are created by parties, not approved by NJREC.
Question 2
,A broker represents a seller and places the seller's interests above all
others. This duty is known as:
A. Loyalty
B. Accounting
C. Disclosure
D. Obedience
Correct Answer: A. Loyalty
Rationale
The fiduciary duty of loyalty requires an agent to act in the client's best
interest.
Examples:
• Protecting the client's negotiating position
• Seeking the best possible terms
• Avoiding conflicts of interest
Question 3
A property owner grants a neighbor permission to use a driveway
temporarily. This is most likely:
A. Easement
B. License
C. Encroachment
D. Deed restriction
Correct Answer: B. License
Rationale
,A license is permission to use another person's property without creating
a permanent property interest.
Characteristics:
• Temporary
• Revocable
• Personal privilege
An easement is generally a more permanent right attached to property.
Question 4
A buyer submits an offer that the seller accepts exactly as written. The
contract is created when:
A. The buyer views the property
B. The seller signs and acceptance is communicated
C. The buyer receives financing approval
D. The deed is recorded
Correct Answer: B. The seller signs and acceptance is
communicated
Rationale
A valid contract requires:
• Offer
• Acceptance
• Consideration
• Competent parties
• Legal purpose
Acceptance must generally be communicated to create a binding
agreement.
, Question 5
A real estate salesperson tells a buyer, "This neighborhood has the best
schools because many families like yours live here." This statement may
violate:
A. Fair Housing laws
B. Antitrust laws
C. Appraisal regulations
D. Recording laws
Correct Answer: A. Fair Housing laws
Rationale
This statement may be considered steering because it directs a buyer
based on familial status or other protected characteristics.
Agents should provide objective information such as:
• School district boundaries
• Property features
• Publicly available data
Question 6
A home sells for $575,000 with a 6% commission. What is the total
commission?
A. $28,500
B. $31,500
C. $34,500
D. $36,500
Practice Exam 2 Questions and Answers with
Rationales Latest Versions
Question 1
The New Jersey Real Estate Commission's primary responsibility is to:
A. Set mortgage interest rates
B. Regulate and license real estate professionals
C. Determine property tax assessments
D. Approve all real estate sales contracts
Correct Answer: B. Regulate and license real estate professionals
Rationale
The New Jersey Real Estate Commission (NJREC) is responsible for
regulating the real estate industry, including:
• Licensing brokers and salespersons
• Establishing education requirements
• Investigating complaints
• Enforcing real estate regulations
Why the others are incorrect:
• A: Interest rates are determined by financial markets and lenders.
• C: Property taxes are handled by local government authorities.
• D: Contracts are created by parties, not approved by NJREC.
Question 2
,A broker represents a seller and places the seller's interests above all
others. This duty is known as:
A. Loyalty
B. Accounting
C. Disclosure
D. Obedience
Correct Answer: A. Loyalty
Rationale
The fiduciary duty of loyalty requires an agent to act in the client's best
interest.
Examples:
• Protecting the client's negotiating position
• Seeking the best possible terms
• Avoiding conflicts of interest
Question 3
A property owner grants a neighbor permission to use a driveway
temporarily. This is most likely:
A. Easement
B. License
C. Encroachment
D. Deed restriction
Correct Answer: B. License
Rationale
,A license is permission to use another person's property without creating
a permanent property interest.
Characteristics:
• Temporary
• Revocable
• Personal privilege
An easement is generally a more permanent right attached to property.
Question 4
A buyer submits an offer that the seller accepts exactly as written. The
contract is created when:
A. The buyer views the property
B. The seller signs and acceptance is communicated
C. The buyer receives financing approval
D. The deed is recorded
Correct Answer: B. The seller signs and acceptance is
communicated
Rationale
A valid contract requires:
• Offer
• Acceptance
• Consideration
• Competent parties
• Legal purpose
Acceptance must generally be communicated to create a binding
agreement.
, Question 5
A real estate salesperson tells a buyer, "This neighborhood has the best
schools because many families like yours live here." This statement may
violate:
A. Fair Housing laws
B. Antitrust laws
C. Appraisal regulations
D. Recording laws
Correct Answer: A. Fair Housing laws
Rationale
This statement may be considered steering because it directs a buyer
based on familial status or other protected characteristics.
Agents should provide objective information such as:
• School district boundaries
• Property features
• Publicly available data
Question 6
A home sells for $575,000 with a 6% commission. What is the total
commission?
A. $28,500
B. $31,500
C. $34,500
D. $36,500
